XAG/USD Extends Decline Near $31.00 Amid Heightened

Silver prices have declined for the third consecutive day, hovering around $31.10 per troy ounce during the European trading session on Friday. Concerns over potential rate hikes have intensified following hawkish statements from Federal Reserve officials.

The remarks, particularly from Dallas Fed President Lorie Logan, underscore ongoing worries about inflation risks despite recent economic easing. According to Reuters, Logan emphasized the need for the Fed to remain adaptable and consider all options as it monitors economic data.

Meanwhile, Bloomberg reported comments from Atlanta Fed President Raphael Bostic highlighting uncertainties in achieving the 2% inflation target, citing broad-based price increases. The stronger US Dollar has also made silver more expensive for foreign buyers, dampening demand and contributing to lower prices. The US Dollar Index (DXY), which measures the USD against other major currencies, is up around 104.80, supported by 4.94% and 4.56% yields on 2-year and 10-year US Treasury bonds respectively.

Recent economic data has shown mixed signals, with the US GDP annualized growth for Q1 revised down to 1.3% and weekly Initial Jobless Claims slightly exceeding expectations at 219,000. Market focus now shifts to Friday's release of the Core Personal Consumption Expenditures (PCE) Price Index, a key inflation indicator for the Fed. Any further softening in these data points could renew discussions about potential rate adjustments, which may influence silver's price dynamics going forward.

XAG/USD

Paraphrasing text from "FX Street" all rights reserved by the original author.